The plaintiffs of the civil suit no. WA-22NCC-567-11/2022 have amicably settled the matter on a “without admission of liability” basis and a consent judgment has been recorded this morning.
Classita and the plaintiffs mutually agreed to a sum of RM3.3 million instead of the claimed amount of RM3.96 million as the settlement amount.
Filed in November 2022, the suit claimed that they had advanced to Classita an estimate of RM3.96 million for day-to-day operations and management costs.
After a more detailed internal inspection and audit was carried out based on the advice of new solicitors, the company’s board of directors were satisfied that several advancements were received from the plaintiffs.
The five shareholders who initiated the original summons were Tee Yam, Low Kok Chuan, Leow Boon Kim, Zhang Jia and Wong who collectively own 67.2 million shares or a 19.82% stake in Classita.
Tee Yam is the largest shareholder among the five, holding 49.38 million shares or a 14.57% stake.
On October 2022, the board of directors had filed a civil suit in Ipoh against 12 defendants including its founder Fong Nyok Yoon and her husband and former managing director Chuah Chin Lai, to recover funds amounting to RM30.55 million allegedly misappropriated from Caely (M) Sdn Bhd.
Siow Hock Lee, Ooo Say Teik, Hem Kan @ Chan Hong Kee, Ng Boon Kang, Tan Loon Cheang, Ng Chun Hau, Lim Chee Pang, Lim Say Leong, Ben Hong Shien and Gok Ching Hee were named as defendants for allegedly conspiring with Chuah and Fong to cover up the misappropriation and breach of fiduciary duty.
Classita’s suit in Shah Alam also named Fong, Chuah and the company’s ten former directors as defendants. The company accused Fong and Chuah of the same, while assessing that the former board failed to disclose the misappropriation.
In its press release today, it said the board of directors are dedicated and remain focused on strengthening the existing business to improve the company’s financial position.
“Besides the lingerie manufacturing business, the group is also working to revive its property development business,” Classita executive chairman Ng Kwok Chai said.
At closing today, the group closed 0.5 sen lower or 3.45% to 14 sen with a market capitalisation of RM47.68 million.